If you leave employment with the Commission with less than two years’ continuous service, your pension benefit is considered to be ‘Non-vested’. This means you will receive a refund of the contributions you made to the Plan plus interest. This does not include the contributions the Commission paid on your behalf and is not based on the pension you ‘earned’ during the time you worked.
You may elect to receive your benefit in one of the following forms:
· A taxable lump sum cash payment;
· A tax-free transfer to another registered pension plan; or
· A tax-free transfer to your personal Registered Retirement Savings Plan (RRSP).
Once you are vested in the Plan (have more than two years of continuous service), the benefit you earn in the Plan is yours. If you leave your job before you are eligible to retire, you have options to take your benefit with you, or leave it in the Plan as a deferred pension. You must select an option within 90 days of termination or you will be deemed to have selected a deferred pension.
You can choose to defer your pension. A deferred pension is the pension you earned up to your termination date. By deferring your pension, you leave it in the Plan.
If you choose to defer your pension, you will have all the advantages of a lifetime pension, complete with survivor benefits for your spouse. The pension is calculated at the date of termination of employment, and with a deferred pension, the Plan bears the investment and longevity risk. You get a secure and reliable stream of monthly pension income for life.
Commuted Value Transfer
Instead of selecting a deferred pension, you can choose to transfer the commuted value of your benefit out of the Plan. The commuted value is what your pension is worth in a lump sum. It is equal to your pension multiplied by a factor based on your age and current interest rates. It is not equal to the sum of your contributions and your employer's matching contributions.
The Commuted Value is calculated at the date you terminated employment using the interest rates in effect at that time.
A commuted value transfer is locked-in; the funds must be used for your retirement income. That means the commuted value must be transferred to a locked-in retirement account and cannot be used for any other purpose. Money cannot be withdrawn from a locked-in retirement account before age 55, and all funds must be withdrawn or converted by age 71.
Once you have transferred your commuted value, you will receive no further benefits from the Plan(s). You will be entirely responsible for subsequent investment returns, including the fees and risks associated with managing your retirement income. You also give up the right to a guaranteed pension from the Plan, along with any indexing that may be provided in the future and the Plan’s early retirement options.
Transfer to another plan
If you begin working for an employer that has a pension plan, you may be able to transfer the value of your benefits in the TRIP Plan and the Regina Police Pension Plan, if applicable, to that plan, if that plan permits transfers. The commuted value is transferred directly to the new Plan. Your new employer will determine the amount of pensionable service that the transferred amount can buy, which may be different than the pensionable service you had built in the TRIP and Regina Police Pension Plans.
Transfer to the Regina Civic Employees Superannuation and Benefit Plan
A member who leaves the employment of the Commission and within 30 days becomes a member of the Regina Civic Employees’ Superannuation and Benefit Plan (Civic Plan) may apply to the TRIP Board to continue membership in the TRIP Plan on a non-contributory basis. This may be beneficial to the member as this allows certain earnings while a member of the Civic Plan to be used in the calculation of benefits under the TRIP Plan. It also allows service under the TRIP Plan, the Civic Plan, and the Regina Police Pension Plan to be used to determine eligibility for retirement under the TRIP Plan.
For benefits payable from TRIP, only service earned while a contributing member of TRIP is used to determine those benefits.
If this provision may apply to you, contact Möbius staff for more information as the information is complex and there are critical deadlines that must be met.
What happens if you return to work after retirement?
Once you have elected to retire, pension benefits must cease if you return to work for the Commission and become a member of the TRIP Plan. If you accept a permanent position with the Commission, or if you accept a casual position, qualify for eligibility, and elect to join the Plan, you must notify Möbius to stop your pension payments. Once you cease working for the Commission, your pension payments will resume once you notify Möbius staff.
You may accept a permanent or casual position with another employer without affecting your pension.